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yellow   Toyota Tsusho to Take 40% of Scholz Stock
    Toyota Tsusho Corporation has announced the agreement to acquire 39.9% of issued stock in Germany's Scholz AG from the Scholz family. Toyota Tsusho expects to finish the acquisition procedure around the end of June after it gets agreements from the banks concerned on continued support to Scholz and European Commission approval of the share acquisition. The Japanese trading company plans to send its representatives to the board of directors with Scholz after the share acquisition. Scholz represents the world's second largest recycling company for metal scrap.
The company boasts its global procurement network for recyclable materials such as end-of-life vehicles.
yellow   AIC Steel Group to Invest with £10m Investment in UK 
    Middle East-based structural steel firm AIC Steel Group has announced it is to open its first UK manufacturing facility on the eight-acre site.
The Rowecord plant went into administration in April 2013, owing £24m and making 430 people redundant. AIC Steel acquired the land and equipment for an undisclosed sum. As part of its expansion plans, the firm will use the 28,000 sq metre Usk Way plant as its UK manufacturing hub and will open a sales office in London to target major projects.
AIC Steel says it will create 120 new jobs at the site. The 12,000 sq metre of covered fabrication bays at the plant provides an annual output capacity of approximately 18,000 tons of structural steelwork.
AIC Steel UK chief executive Michael Treacy said: “We are delighted to be able to announce this investment and a long-term commitment to Newport, which is helped by the fact that we aren't answerable to shareholders and are backed by a major global parent company. We have a clear strategy for building a thriving business here in the UK. “We have a long and proud track record of delivering high-quality work, and our global network of satisfied customers holds the key to our success. Having worked with a number of UK consultants on major projects, it was a natural progression to establish a presence here. There are a number of exciting opportunities in the UK market that we are proactively targeting.
“We chose Newport as our manufacturing hub as it has a culture that supports heavy industry and a skilled local workforce. There is a good supplier infrastructure in south Wales that we can tap into, and the port will be integral to our export activity.
Advanced manufacturing and materials is a priority sector of the Welsh economy and overseas investment into Wales has increased by almost 200%, Economy Minister Edwina Hart said.
She added: “AIC Steel's decision to open its first UK manufacturing facility in Wales was founded on the excellent existing transport and supplier infrastructures in south-east Wales and the highly skilled local workforce. This is a real endorsement that Wales is a great place to do business and we have the skills and expertise to support this significant investment.
yellow   Finnish Outokumpu Wins Stainless Steel Order from Oman
    It is reported that Finnish Outokumpu announced that the company won an order of 22,000 tons duplex stainless steel from Oman. The company said this is the largest single project in duplex stainless steel that the company has established. The company has supplied to Oman multiple gas projects for many years.
There are two plants producing related products including Sosta and Inox Tech for their current customers. Sosta is a major manufacturer of stainless steel welded pipe, focusing on global oil and gas markets. Inox Tech is specializing in corrosion-resistant alloy welded pipes of large diameter thick wall companies.
yellow   Baosteel Stainless Raises Stainless Coil Export Prices
    Baosteel Stainless, the second largest stainless producer in China announced to hike its export prices for 304 grade stainless steel coils by US$50/ton due to surged nickel prices. The official of Baosteel Stainless said that the demand in April was expected to be very good and buyers have started inquiring.
yellow   Japanese EG Exports to Thailand Faces Tough Times Due to Korea and China
    Japanese mills' export of electro galvanized steel sheets to Thailand has been forced to engage in a very hard fought struggle caused by export drives of the Chinese and Korean mills as reported by Tex.
In Thailand, it has shifted a rice policy from the guaranteed price system to the unhulled rice collateral loan system that financing is provided to farmers on security of unhulled rice deposited. However, inventory of rice has placed a burden on the national budget by this policy, and in addition to this, as domestic prices of rice are soared, import of rice from India and Vietnam is increasing.
As a consequence, the Government is the subject of criticism, and the economy in that country is deteriorating. For such economic situation, manufacturers of office automation equipment in that country including Japanese makers to change EG sheets having been used in the past into cheap hot-dip galvanized steel sheets of China are increasing in order to reduce production costs.
China's main players of export of hot-dip galvanized sheets to Thailand are said to be Anshan Iron & Steel, Panzhihua Iron & Steel and so on, and their prices are mainly around USD 640 CFR. This price level corresponds to prices of cold-rolled steel sheets for general use.
While, Japanese prices of EG sheets are mainly USD 760 CFR. The difference is more than USD 100. Korea's POSCO seems to have reduced its prices to the level of USD 720 CFR as its countermeasure against the Chinese mills. There is information that the company has counteracted Chines products not only for EG sheets but also hot dip galvanized sheets and lowered its prices similar to that of Chinese mills.
POSCO is proceeding with a construction plan of the CGL of hot-dip galvanized sheets (with an annual capacity of 400,000 tonnes) in Thailand and is thought to be seeking for sales expansion of hot dip galvanized sheets in Thailand in order to smooth the way. As Japanese prices of hot-dip galvanized sheets are exceeding USD 800, it is difficult to change from EG sheets to hot-dip galvanized sheets.
yellow   South Korea's Hyundai Steel to Build Special Steel Factory
    South Korea's Hyundai Steel said it has started to build a special steel production factory inside its Dangjin Steel Mill. The plant is expected to be completed by 2015, with initial output of 1 million tons in the first year.
Hyundai STEEL also has a special steel factory in Pohang, North Gyeongsang, which is capable of producing 500,000 tons per year. The output of special steels will be mainly used in auto parts, according to the company. Besides, the new production output will reduce the imports of special steel in the country.
yellow   Lingyuan Steel to Invest CNY 1 Billion to Establish Wholly Owned Subsidiary
    Lingyuan Steel has completed the industrial and commercial registration of its wholly owned subsidiary, Lingyuan Steel International Trade Company Limited approved by Industrial and commercial Administration Bureau of Chaoyang city, Liaoning Province. The company has a registered capital of CNY 1 billion which is mainly focused on purchasing and marketing of metallurgical products and its by products, minerals, coal, alloy metal, metal materials, electrical materials and appliances, wire and cable, building materials, refractory materials, electrical equipment, instrumentation, chemical products (excluding monitoring, poisonous and hazardous chemicals); providing technical consulting and technical communication services; operating import and export business of all kinds of goods and technology.
yellow   Turkish Seamless Pipe Imports Up by 13.57%
    According to data released by the Turkish Statistical Institute, Turkey's imports of seamless steel pipes totaled 33,100 tonnes in the first two months of this year, up by 13.57% YoY.
The import values amounted to USD 47.56 million down by 2.75% YoY. In the given period of time, China was the largest exporter of seamless steel pipes to Turkey with 22,000 tonnes and Ukraine was the second largest one with 3,960 tonnes.
yellow   Tata Motors Global Sales Decline 18% in March
    Tata Motors recently reported 17.89 per cent decline in its global sales, including that of Jaguar Land Rover (JLR) vehicles, to 95,668 units last month.
The company had sold 1, 16,521 units in March last year, Tata Motors said in a statement.
In the passenger vehicles category, global sales last month were at 56,420 units, as against 55,722 units in March 2013, up 1.25 per cent. Sales of luxury brand Jaguar Land Rover rose 1.47% to 43,311 units in March, compared with 42,682 units in the same month last year.
The company's sales of commercial vehicles in March declined by 35.44% to 39,248 units from 60,799 units a year ago.
yellow   Outotec Bags Order for Iron Ore Pelletizing Plant from Indian Client
    Outotec has received an order from a customer in India for the design and delivery of an iron ore pelletizing plant to be constructed in North East India. The value of the order is approximately EUR 70 million and it will be booked in Outotec's second quarter 2014 order intake.
Outotec's scope of delivery includes technology for a traveling grate pelletizing plant, engineering, key process equipment as well as erection and commissioning services. Once operational the plant will produce annually 4 MT of iron ore pellets to be used as raw material for steel production.
Robin Lindahl president of Metals, Energy & Water business area at Outotec said that "We are happy to share our vast pelletizing expertise with this customer to turn waste into products and thus improve their profitability. This is a very unique effort towards sustainability in India, where environmental awareness is rapidly rising. Also, this is our largest order in the extremely cost conscious Indian market and indicates that there is demand for our innovative and sustainable solutions.”
yellow   Tokyo Steel Keeps Product Prices Unchanged for May
    Japan's top electric arc furnace steelmaker Tokyo Steel Manufacturing Company will keep product prices unchanged for a fourth straight month in May as stockpiles have increased after labour shortages delayed construction projects as reported by Reuters. Kiyoshi Imamura MD of Tokyo Steel said "Due to a shortage of workers, processing machineries, and transportation, some construction projects have been halted or delayed, which led to a boost in inventories. Prices for its main product H-shaped beams which are used in construction, will stay flat at JPY 80,000 per tonne in May.” Imamura said "But after the April to June quarter, demand will likely pick up as several big redevelopment projects in Tokyo metropolitan area will start and construction of large warehouses and shopping malls are also set to gather pace.”
The company's pricing strategy is closely watched by Asian rivals such as POSCO, Hyundai Steel Company and BaoSteel which aim to boost exports to Japan. Helped by higher product prices, Tokyo Steel reported on Friday an operating profit of JPY 24.34 million for the business year ended March 31, its first profit in five years.
yellow   Indonesian Coal Industry at A Crossroads
    Despite the raw minerals export ban coming into effect on January 12th 2014, a lot of questions remain. Mining lobbyists are still trying to persuade the government to reopen the export tap, yet the government stands firm as reported by thejakartapost.com.
The hysteria surrounding the export ban has blinded most of us to the fact that a revolution is under way in the coal industry. Coal, as it is not one of the 14 metallic and 8 non-metallic minerals listed in the Energy and Mineral Resources Ministerial Regulation No. 7/2012, is exempt from the pre-export processing requirement.
Thus, the issues surrounding coal differ from those affecting minerals: The most important ones currently are unquestionably the royalty increase and the production quota.
With total production reaching 421 MT last year with the price range of between USD 40 and USD 80 per tonne, the coal industry has enormous economic potential. The royalty increase, which is paid to the government as a percentage of sales, will definitely be a welcome boost to the state's income.
However, that action is complicated by the fact that different royalty rates are applied for different mining permit holders and coal qualities. Companies with mining permits (IUP), which have been issued since 2009, pay a 3% to 7% royalty, depending on the coal quality sold in accordance with Government Regulation No. 9/2012.
Companies with coal mining business permits (PKP2B) that predate the IUP must pay a 13.5% royalty. The government then plans to exert a single royalty rate (13.5%) to all existing coal companies. Such an idea received strong opposition from mining players, who claimed the decreasing trend of the price of coal had slashed most of their profit and a further increase in royalties would affect their businesses.
Recent reports mentioned that the government decided to re-asses their plan to increase coal royalties and involve mining players in the mapping and refining, as a win-win solution. Getting a larger share of non-renewable resources is a classical problem faced by the government of any country. Countless combinations of different taxes (corporate tax, value-added tax, etc.) and royalty systems can be modelled to predict the optimum one. Nonetheless, the “Laffer-curve” rule must be taken into consideration: The Laffer-curve is a mountain-shaped curve that correlates the possible government income on its vertical axis to the taxation rate (0% to 100%) on its horizontal axis.
yellow   Tata Steel Set to Finalize Investment in Canada
    The financial viability of its iron ore mining and pellet project in Canada confirmed by a study, TATA Steel is set to decide on an investment.
TATA Steel is a strategic partner and the biggest stakeholder in the Toronto Stock Exchange listed New Millennium Iron Corporation, which is pursuing the project. NML did not disclose the size of the proposed investment. NML said the project financials have been evaluated with capital expenses, excluding certain infrastructure-related capital expenses in the mine; port and ferroduct of over 600 kilometer to carry the ore concentrate slurry to the pellet unit. These would be owned by third parties.
Robert Patzelt president and CEO of NML said “We are very pleased with the results of this joint study. We believe the results present a compelling case for a profitable, successful, long term iron ore operation.”
He added the favourable geological and mining characteristics of the 2 deposits, Labmag and KeMag in eastern Canada's sub Arctic region were manifested in the study's operating cost estimates.
yellow   Steel Production Crucial for Slovak Industry - Economy Ministry
The Economy Ministry wrote in a proposal for an Action Plan for a Competitive and Sustainable Steel Industry in Slovakia that the Production of steel has been and will remain one of the main pillars of Slovakia's industrial development, and without industry, an indispensable part of which is steel production, it would be impossible to achieve stability in the country's economy and sustainable employment.
TASR said that the steel industry is the basis for the development and production of resources necessary for many key industrial sectors such as metallurgy, construction, automobile manufacturing, mechanical and power engineering reads the text, which the cabinet is scheduled to discuss at its April 23 session.
According to the Economy Ministry, the government has maximum interest in maintaining steel production in Slovakia at the current level and views steel production as a strategic industrial sector.
he said “with an eye towards sustainable employment, the Slovak Government will create the conditions needed to maintain the long-term development of this sector, including by drafting Memoranda of Understanding between the Slovak Republic and significant companies involved in steel production”.
    This section is a compilation from various company press releases, business dailies &
trade publications.